Iberdrola’s Scottish Power subsidiary confirms new south Britain offshore wind-farm developments

Jonathan Cole
Jonathan Cole

The British Crown Estate has concluded new agreements with offshore wind developers Scottish Power, Vattenfall and Denmark state-owned utility DONG Energy, which have reconfigured or identified new projects within their respective Round 3 offshore wind development zones. 

The Spanish-owned subsidiary Scottish Power is developing the 714 MW East Anglia-1 project, which reached final investment decision in February. East Anglia-3 is also in development, with a capacity of up to 1.2GW. Scottish Power will also take forward two new projects: East Anglia-2 and East Anglia-1 North, with the capacity of up to 800MW each.

Since the award of zone agreements in 2009, developers have had exclusive rights to areas of UK seabed to identify the best locations to develop large scale offshore wind projects. With this appraisal phase now largely complete, developer focus is shifting to the development and delivery of the resulting projects. 

Jonathan Cole, Managing Director off Offshore Wind, Scottish Power Renewables, told the recent East of England Energy Group conference that offshore wind farms would be built off the East Anglia coast ‘for the next decade.’

He said: “The water depth off the south Britain coast was perfect for building wind farms, enabling developers to standardise and industrialise offshore wind to drive opportunity up and drive costs down”.

As announced in 2014, The Crown Estate has offered streamlined terms for project specific ‘agreements for lease’ (AfLs), alongside the hand-back of seabed rights for the remaining parts of the zone which are no longer required. An overview of the agreements reached is set out below:

DONG Energy has concluded an appraisal process to reconfigure its Hornsea Zone projects, following its acquisition of the remainder of the zone from Mainstream Renewable Power and Siemens Financial Services in 2015.

The resulting projects are Hornsea Project-2, Hornsea Project-3and Hornsea Project-4. The previously identified Hornsea Project-3has been split into two separate projects: Hornsea Project Three, to the east of Hornsea Project Two, and Hornsea Project Four, to the west. This follows DONG Energy’s recent announcement of reaching the Final Investment Decision for the 1.2 GW Hornsea Project One in early February 2016. 

Following Scottish Power and Vattenfall’s announcement last year to independently take forward projects within the East Anglia Zone, both organisations have now concluded their joint zone related activities.  

  • Scottish Power is developing the 714 MW East Anglia-1 project, East Anglia-3 is also in development, with a capacity of up to 1.2 GW.  Scottish Power  will also take forward two new projects: East Anglia-2(up to 800 MW) and East Anglia-1 North (up to 800 MW). 
  • Vattenfall is taking forward two projects in the northern part of the previous East Anglia zone area. Each project will have a target capacity of 1.8 GW. One of the projects, currently known as Tranche 1, includes parts of the seabed previously identified as East Anglia-

Huub den Rooijen, Director of Energy, Minerals & Infrastructure at the British Crown Estate”s London office said: “These eannouncements are another important step for the offshore wind sector on its path to becoming a large-scale, affordable and reliable power source. With the industry on track to supply 10% of the UK’s electricity demand by 2020, these infrastructure projects will contribute to its continued growth into the 2020s.”

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed